CHARTERED ACCOUNTANTS
[[BANK NAME]]
ACCOUNT
[[BORROWER NAME]]
BY
SEPTEMBER 2010
Disclaimer - The information in this document is private and confidential and is only intended for use by the Mumbai Regional Office, [[BANK NAME]] and access to this document by anyone else is unauthorized. Any unauthorized disclosure, reproduction, distribution, copying, use or dissemination either in whole or in part is strictly prohibited. Readers are advised to prior consult with Partner-in-Charge before making any interpretation & inferences.
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CERTIFICATE
TO WHOMSOEVER IT MAY CONCERN This is to state that M/s S. T. MODI & CO. CHARTERED ACCOUNTANTS had carried out the Stock Audit of M/S [[BORROWER NAME]], account of [[BRANCH NAME]] BRANCH of [[BANK NAME]] in consonance of the authority and within the Scope of Audit prescribed in the appointment letter Ref No _____ dated ______ issued by the Mumbai Regional Office, [[BANK NAME]]; and Certify that audit observations reported in the Stock Audit Report were previously discussed by CA. Sujit Modi, Partner of the firm with SHRI _______ the Branch Manager of [[BRANCH NAME]] Branch ( ) of [[BANK NAME]] on ______.
Confirmed by me :For S. T. MODI & CO. CHARTERED ACCOUNTANTS FIRM REGN NO :- 124055W
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10 Registered Address & Corporate Office Owned / Rented 11 Present Credit facilities with our Bank. 12 Drawing Power as on 31/08/2010 13 Date & sanctioning authority of last sanction/ renewal 14 Banking arrangement sole/multiple/consortium SISTER CONCERNS, ASSSOCIATES, RELATED PARTIES, ETC 15 Names of Sister Concerns, Associates, Related Parties, etc if any 16 Credit facilities enjoyed by ___ above 17 Information on financial transactions of Borrower with Sister Concerns, Associates, Related Parties, etc MANUFACTURING UNITS & GODOWNS 18 Factory Unit/s & Godowns Address STOCK AUDIT REPORT - [[BORROWER NAME]] Page 3 of 13 Annexure C Credit Facilities enjoyed by Sister Concerns Annexure A Borrower Present Credit Facilities Annexure B Drawing Power Calculation
Regularity of Payments o o o o o o o Rent Muncipal Taxes & Dues Society Dues & Maintenance Electricity Charges Water Charges Loan Installments Others
21 Monthly capacity details Installed Capacity Capacity Utilized Efficiency % Machinery Description Purchase Year Residual Life Existing Condition
22 Particulars of machinery
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26 Instances of breakdown of plant & machinery & frequency of such occurrences in last 6 months 27 Details of Charges, Mortgages, Pledge, Lien, Encumbrances, on Plant & Machinery, if any 28 Whether godown-keeper / godown chowkidar is appointed? INVENTORIES 29 Brief note on Production Cycle Annexure D Composition of Raw Materials & Production Cycle 30 Particulars of Inventories 31 Records evidencing for goods in transit or sent to outsiders for processing or lying with sales depots, branches, etc 32 Discrepancies noticed on physical verification of Inventories appearing in Inventories statement submitted to the bank, Inventories Register & Excise Records 33 Is turnover in Inventories satisfactory? 34 Regularity of reconciliation of inventory records & verification of inventories 35 Whether the branch receives Inventories statements certified by borrower on or before due date? BOOK DEBTS 36 Particulars of Book Debts 37 Whether Book Debts of Sister Concerns, Associates, Related Parties, etc are included in Book Debts statement? 38 Whether sales bills are accompanied by copy Annexure F Particulars of Book Debts Annexure E Particulars of Inventories
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46 Whether goods-in-transit are insured? 47 Whether outsiders goods kept with own goods are separately insured 48 Whether goods sent outside units for processing are separately insured? 49 Whether Bank Clause is included in Insurance Policies? OTHER ISSUES 50 Are there any cases of diversion of funds for other than business needs? 51 Business Performance: - Whether production / sales achievements found in line with production. If not, offer comments Year ended 2010 Projected sales Actual sales
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54 Excise Duty Last tax/duty paid Last Return filed Last Assessment completed
55 Service Tax Last tax/duty paid Last Return filed Last Assessment completed
56 Income Tax Last tax/duty paid Last Return filed Last Assessment completed
57 Employees Provident Fund Last tax/duty paid Last Return filed Last Assessment completed
58 ESIC Last tax/duty paid Last Return filed Last Assessment completed
59 Others (Gratuity, Profession Tax, etc) BUSINESS PERFORMANCE & RATIOS 60 Financial Analysis 61 Books of Accounts & records maintained on regular basis Annexure G Key Figures from ABS Sales Register, Purchase Register, Sales Bills, Purchase Bills, Inventory Register, Debtors Register, Creditors Register, Journal Book, Cash book & Bank Book. OTHER INSPECTION/AUDIT STOCK AUDIT REPORT - [[BORROWER NAME]] Page 7 of 13
For S. T. MODI & CO. CHARTERED ACCOUNTANTS FIRM REGN NO: 124055W
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--: INDEX :-Sr No 1 2 3 4 5 6 7 8 Annexure A B C D E F G H Clause 12 13 17 30 31 37 61 Particulars Present Credit Facilities given to the Borrower Drawing Power Calculation List of Sister Concerns & Associate Companies & limits sanctioned Production Cycle Particulars of Inventories Particulars of Book Debts Business Performance & Analysis of Financial Statements Any other points
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Facility
Overdues Rs lakhs
Security
Annexure B Drawing Power Calculation (Refer Clause No 12) Particulars Value of Inventories / hypothecated Value of book debts / hypothecated (Less Than 90 days.) Total Less : Creditors Working Capital Gap Less :Margin 25% Drawing Power Outstanding (As on ) Amount Rs lakhs
ANNEXURE C LIST OF SISTER CONCERNS, ASSOCIATES, RELATED PARTIES, ETC AND LIMITS SANCTIONED (Refer Clause No 16)
Table A Entities enjoying facilities from [[BANK NAME]] Sr No Name of Concern Relation* Limits Sanctioned (Rs lakhs) O/s Balance as on ________ (Rs lakhs) IRAC Status (as on 31/03/2010)
Table B Entities not having any facilities from [[BANK NAME]] Sr No Name of Concern Relation
Composition of Raw Materials in Finished Goods Raw Material Qty % share Cost
Total
100%
Annexure E - Particulars of Inventories (Refer Clause No 30) Particulars of inventories as on ______ Sr No Inventory Nature Location Product Life Valuation Method
Inventory Summary as on _____ Inventory Below 90 days Qty Value Rs lakhs Raw Materials Work-in-Progress Finished Goods Total Above 90 days Qty Value Rs lakhs Qty Total Value Rs lakhs
Annexure F PARTICULARS OF DEBTORS (Refer Clause No 36) Ageing Analysis of Book Debts as on _____
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Book Debts Summary as on ____ Book Debts Below 90 days Sales Rs lakhs Domestic Exports Sister Concerns & Associates Provision for Doubtful Debts/ Bad Debts Total Book Debts Rs lakhs Above 90 days Sales Rs lakhs Book Debts Rs lakhs Total Sales Rs lakhs Book Debts Rs lakhs
ANNEXURE G BUSINESS PERFORMANCE & ANALYSIS OF FINANCIAL STATEMENTS (Refer Clause No 60) Financial Results
Balance Sheet Key figures in Rs lakhs Net Worth Secured Loans Net Fixed Assets
2009
2010
Profit & Loss Key figures in Rs lakhs Turnover Increase in Stock EBDITA
2009
2010
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Note:-
Financial Analysis Certain useful ratios; Ratios EBITDA % PAT% Current Asset Ratio TOL / TONW Ratio Current Asset Turnover Ratio Inventory Turnover Ratio Debtors Turnover Ratio 2009 2010
Annexure H Details of Insurance Policies A) Details of Asset Insurance Policy Policy issued by Policy Period Policy No Risk Covered Bank Clause included Sum Insured : : : : : :
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